State-owned National Fertilizers Ltd (NFL) has announced that it will acquire an 18 per cent stake in a proposed joint venture to set up a new Ammonia-Urea complex — the Namrup-IV Fertilizer Plant — in Assam at an investment valued at approximately Rs 572.45 crore.
X/@psuconnect
State-owned National Fertilizers Ltd (NFL) has announced that it will acquire an 18 per cent stake in a proposed joint venture to set up a new Ammonia-Urea complex — the Namrup-IV Fertilizer Plant — in Assam at an investment valued at approximately Rs 572.45 crore.
In a regulatory filing on Friday, NFL said its board had approved entering into a Joint Venture Agreement with other nominated entities to establish the Namrup-IV project within the existing premises of Brahmaputra Valley Fertilizer Corporation Ltd (BVFCL) in Namrup, Dibrugarh district of Assam.
Advertisement
The total project is estimated to cost Rs 10,601.40 crore and will be implemented as a brownfield expansion.
Advertisement
The Union Cabinet, chaired by Prime Minister Narendra Modi, gave its nod to the proposal last month.
The new complex will have an annual production capacity of 12.7 lakh metric tonnes of urea and will be developed with a debt-equity ratio of 70:30.
The equity structure of the joint venture will be : Assam Government – 40 per cent, Oil India Limited (OIL) – 18 per cent , National Fertilizers Ltd (NFL) – 18 per cent , Hindustan Urvarak & Rasayan Ltd (HURL) – 13 per cent , Brahmaputra Valley Fertilizer Corporation Ltd (BVFCL) – 11 per cent (contributing through tangible assets)
The Namrup-IV plant is expected to be commissioned within 48 months of the project launch. Once operational, it will significantly enhance domestic urea output, reducing dependency on imports and ensuring a steady fertilizer supply in the northeastern states, Bihar, Jharkhand, West Bengal, and eastern Uttar Pradesh.
BVFCL, a public sector enterprise under the Department of Fertilizers, Ministry of Chemicals and Fertilizers, operates India’s oldest gas-based fertilizer plants at Namrup. However, its two existing units — Namrup-I and II — have become obsolete, while Namrup-III is operating below capacity due to ageing infrastructure. The new Namrup-IV unit is part of the government’s broader initiative to rejuvenate the fertilizer sector and make India self-reliant in urea production.
Advertisement
